A Daily Dose of Insight and Common Sense

Subsidies, regulations, tax credits and write-offs, … Why is it okay for the government to pick winners and losers in industry, business, finance, research, or agriculture? To manipulate by loosening the purse strings? Supplement entire industries in the name of the greater good? Even with the best of intentions, it is not the role of government to be a catalyst in the marketplace. For far too long we have let Washington redirect true economic progress and we are now on a collision course with reality. Only the free-market can correct the route we are on. The momentum of growth will take the path of least resistance. We should not be surprised at the cesspool on Wall St. We have allowed the invasion to meddle and fester. If the economy is stagnant, it is because government is in the way.

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For every natural action there is an equal and opposite reaction, an ebb and flow, a balance created to sustain the natural order. Political influence over the markets has rapidly grown, becoming a wrecking ball that collides with the economy. An attempt to manipulate the markets with outside forces only creates instability, chaos, and inhibits recovery. Although carefully contrived, coercion only impedes improvement. Regulations, stimulation, subsidies, policies, programs, bailouts, and mandates are hollow investments that will push down on the economy with the same force of their initial influence. The weight of government burdens push and pull against the system not allowing it to self-correct. The result: a weaker, artificial economy, never as good as the real thing. True revitalization has to come from within, without intervention. The economy needs stability, predictability, and reassurance, not so-called progress getting in the way. An authentic recovery must come from consumers, not politicians who curse gravity, denying that sometimes the best thing to do is… nothing. If every time you hit a guy he only hits back harder, maybe you should stop hitting him.

The results of temporarily strengthening the economy with artificial gains have long-term negative effects. The unhealthy economic atmosphere created by over-regulation caps the benefits of hiring. Health insurance, worker’s comp., stricter requirements for larger businesses, and the unknown impacts of proposed legislation all limit expansion and deter entrepreneurship. Innovation, improvements, and new industry are caged in red tape and government assistance programs. It requires so many private sector jobs to support a single government salary, especially when government workers make about 40% more for doing that same job. The government should not be in the investment business. We need good stewards, not better brokers with our tax dollars. It’s time to get off the juice.

If the market is in recovery, it is in spite of the stimulus, manipulation, and over-regulation by the government and not because of it. It only shows the resolve of the American people and corporations, our ability to adapt, our survival instinct, and our innate pursuit of happiness. We will keep going, keep striving for true progress, and keep disputing the oppressive power of the government over enterprise. We need a rightful separation of commerce and state. Oversight is now overstepping. It has gone from market protection to market manipulation, and continues on to market control. The excessive regulation power has become corrupt. Almost 3.5 billion dollars were spent on federal lobbying last year, proof that influence may be bought, and that amount keeps climbing. Legislators need to be reminded of who they work for. Campaigns may be financed, but our votes cannot be bought. The American people are not on the take.

Almost all of the federal legislation that has been passed in the past year has been served to a public that has been falsely told they are starving. Skipping a meal or two or a few legislative sessions won’t cause us to waste away. Waiting to do what is right is better than doing what is right now. The current agenda is full of bad apples. The tainted items continue to be baked into every law that is brought to the table. Republicans know that the dish will be toxic yet some are still adding their own ingredients into the mix. I’m not saying that they should get out of the kitchen, but it would be nice if they would quit stirring the pot. The American people will be restocking the pantry come November.

A family finances view of the National Debt… with a $50,000 annual income.

Their current debt would be $309,500, over 6 times their annual income. Annual expenses would total $83,000, adding $33,000 to their debt every year. 9% of their income is simply paying the interest. Stimulus and bailout spending would equal $135,000, all borrowed money. Contractual liabilities such as an outstanding mortgage or vehicle agreements would total 2.6 million dollars, allocating $39,000 per year. And they’ve just co-signed for a few of their neighbors’ new homes, debts of $323,000. But the present looks rosy considering rising utility and health care costs in the near future. Cutting 100 million out of the National Budget would be equivalent to $2.38 for the year. It’s time to get our house in order. I don’t think credit counseling is going to cut it.

Could liberal leaders pass third grade physical science? Cause and effect seems to be a concept far too complex for re-distribution theorists. What precedent is being set? With the bailouts and entitlement concoctions the problem worsens. Liberal idealists have the false perception that there are no negative effects, like someone who gets smashed on Friday night not believing in Saturday morning.

“History teaches us that man learns nothing from history.” — Hegel

But now has the present taught us that man cannot learn from the present? The policies of social democracy and government dependence have failed. Europe continues to down shots while Greece is puking on its shoes, and now America is asking, “Can you pass one over here?” How ridiculous is it to get wasted during this obvious afterschool special? The nausea is being subdued by yet another round of drinks, but the hangover is inevitable, unless we die from arrogance poisoning first.

Ouch! When government messes with the machine of capitalism it interferes with the natural laws of economics. The markets will never run smoothly when the ground is shaking. The instability caused by over-regulating the so-called free market system, is the number one road block to economic growth and job creation. “Who wants to play the game, when the rules are still being written?” Those in power when they can’t win, simply change the rules. With federal bailouts, health care overhauls, possible cap-and-trade, and more financial oversight, the government is throwing the entire toolbox at the system. A Supreme Court ruling that would limit federal power and restrain the use of the commerce clause would put a firm foundation back under businesses that hold this country together. The government needs to look at the blueprints that allowed for highest production, get out of the way, and let America work.

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Anyone who has ever been around an infant or toddler for more than a few hours knows that a diaper change is only a temporary fix. If the underlying problem isn’t addressed things just continue to go to crap. The liberal viewpoint on the current economic crisis is simply to change a lot of diapers, and diapers are too expensive to keep changing for the years to come. The Democrat led Congress has spent way too much on diapers in the past couple of years and continues to purchase them in bulk. The corporate bailouts will cost America billions if not trillions of dollars. It’s time to start dealing with the real issues and begin potting training. Yes, it will be difficult, frustrating, and a little messy, but in the end… problem solved. The present crap needs taken care of, and a bath given if necessary, but corporations that aren’t allowed to fail cause a rift in the natural order of capitalism. Washington needs to quit wiping the butt of big business. If they are too big to fail, they are too big to fail without our help. Ignoring the situation, rewarding bad behavior, and going through decades of diaper changing will only multiply the national debt and leave the present problems for future generations. What a mess.

(Written Sept. 11, 2008)

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(TARP) When the Secretary of the Treasury drew up his proposal to give himself 700 billion dollars of our money to spend on Wall St. it was 3 pages long. When the House brought the bill to a vote days later it was 110 pages. When the Senate voted and passed its Bailout Bill it had inflated to 451 pages. The Bill had become the temperature to ignite the economic meltdown not to extinguish it. Congress couldn’t put aside selfish greed for 3 days to simply do what they were hired for. If an employee was stealing office supplies or embezzling company funds , which is no different from earmark spending, except it’s legal (only because Congress makes the laws) they would be fired and most likely prosecuted. And that’s what congress members are: our employees. We hired them to speak on our behalf, and they need to be held accountable for insubordination if nothing else.

The legislative process needs to change. 451 pages in 2 days! I bet with everything going on, not a single congress member read through it, let alone had an hour to research anything in it. I’m an avid reader, but 451 pages full of legal jargon would likely put me in a coma. Bills pass all the time and earmarks aren’t even discovered until months later. The process of bribery and buying votes needs to stop now. No more happy meal toys for congress. They shouldn’t be buying the cereal for the toy in the bottom of the box. I’m tired of hearing that’s just how the process works. I think a bill should be passed that limits the items in a bill to the ONE topic or concern in the reference line. No more other items or miscellaneous allowed. If the item has a purpose it should be in its own bill. I’d like to limit the number of pages possible for a single piece of legislation. A high school or even college graduate should be able to read it, understand it, and be able voice their opinion to their representative.

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About

Although a few entries may be a little hard for some to swallow, my hope is to show readers a fresh perspective, by linking the issues and problems of today with analogies from everyday life.

I had taken a break from daily writing to realign my offline priorities. Gotta keep it all in perspective. I hope to make almost daily posts again and keep you clicking back to see newer posts as they are written. I know time is a rare and valuable asset, thanks for spending some of yours here.